How much will my degree cost?
Project tuition, living costs, and your graduation loan balance year-by-year — with inflation built in.
Calculator educationLogic updated April 2026
This calculator builds a year-by-year accumulation of tuition plus living costs over the duration of a course, with optional inflation indexing on each component. It also models the loan balance on graduation day, including any interest that capitalises during study, so you start your career knowing exactly what you owe.
How this is calculated
Formula
Each year: tuition × (1+tuitionInflation)^(year-1) + living × (1+livingInflation)^(year-1) ; loan accrues interest annually during study and capitalises onto balanceStep-by-step
- For each year of study, inflate tuition by the tuition inflation rate (compounded from year 1)
- For each year, inflate living costs by the living-cost inflation rate
- Subtract upfront savings, scholarships, and grants from the total — these reduce the amount that needs to be financed
- Of the remaining cost, the loan-funded percentage is borrowed each year
- The loan balance accrues interest annually during study at the loan rate, capitalising onto the running balance
- Report total nominal cost, total real cost (inflation-adjusted), amount financed, and graduation-day loan balance
- Rounding mode
- ROUND_HALF_UP
- Precision
- 20-digit internal precision (Decimal.js), rounded to 2 decimal places for display
- Logic last reviewed
Assumptions & limitations
What this calculator assumes
- Tuition and living costs increase by their respective annual rates each year, compounded
- Upfront savings, scholarships, and grants are applied at the start of year 1
- After savings, a fixed percentage of the remaining cost is borrowed each year
- Loan interest accrues annually during study and is capitalised onto the balance
- Interest does not accrue on out-of-pocket (non-loan) contributions
What this calculator doesn’t account for
- Doesn't model jurisdiction-specific tuition assistance, government grants, or income-contingent loans
- Doesn't account for variable annual loan rates
- Doesn't include hidden costs (textbooks, technology, professional registration)
- Doesn't model part-time vs full-time enrolment differences
- Doesn't include any income earned during study (use the part-time savings calculator alongside)
Worked example
A prospective student plans a 3-year degree at $15,000/year tuition and $20,000/year living costs, with tuition inflating 4% and living costs inflating 3%, $10,000 of upfront savings, 50% of the rest funded by a 5% loan.
| Input | Value |
|---|---|
| Tuition (year 1) | $15,000 |
| Living costs (year 1) | $20,000 |
| Tuition inflation / living inflation | 4% / 3% |
| Upfront savings | $10,000 |
| Loan-funded percent / rate | 50% / 5% |
| Study duration | 3 years |
Total nominal cost: ~$110,300 — Loan balance at graduation: ~$52,800
Year 1: $35,000 ($15k + $20k). Year 2: ~$36,200 with inflation. Year 3: ~$37,500. Total ~$108,700; subtract $10,000 of savings = $98,700 to fund. 50% loan-funded = $49,350 borrowed. Interest at 5% capitalising annually during study brings the graduation balance to ~$52,800. The student starts their career owing roughly that amount, on top of having paid the other $46,000 out of pocket and savings.
Frequently asked questions
What is the true cost of education?
Direct costs (tuition, fees, books) plus living costs above what you'd otherwise pay (housing, food, transport while studying full-time), plus opportunity cost (income forgone). This calculator handles the first two. Total true cost is typically 2–3× the headline tuition figure once living costs are factored in — and that's before opportunity cost is added on.
What costs do students typically underestimate?
Tuition inflation (often 4–6% per year, compounding), interest capitalisation on loans during study (which can add 10–20% to the loan balance by graduation), and the everyday costs of being a student (technology, professional registration, work placements, conferences). Sticker tuition for year 1 understates true cost meaningfully — the calculator's inflation inputs help correct that.
How does study duration affect total cost?
Linearly on costs and exponentially on inflation effects. A 4-year degree vs a 3-year degree at the same starting tuition typically costs more than 4/3 of the 3-year total, because year 4 tuition is at the highest inflated rate. The interest accruing on the loan during the extra year also capitalises onto the graduation balance — which is why some students choose accelerated programmes to compress total cost.
Part-time vs full-time cost comparison?
Part-time spreads tuition over more years, lowering the per-year burden but extending the inflation timeline. The total nominal tuition is often higher because each year is more inflated than it would have been in a faster programme. The trade-off: part-time often allows partial earnings during study, which the financial picture can favour despite the higher gross cost. Use the part-time savings calculator alongside this one to see the net picture.
Why does interest capitalise during study?
Most student loans accrue interest from disbursement, but defer required payments until after graduation. The accrued interest is added to the principal periodically (often annually), so by graduation the loan balance is bigger than what was originally borrowed. This calculator models annual capitalisation. If your loan offers a grace period with no interest, the graduation balance will be lower than this calculator projects.
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